5999-S AMS SCHO S2767

5999-S AMS SCHO S2767.2

SSB 5999 - S AMD - 261

By Senators Schow and Heavey

NOT ADOPTED 4/2/97

Beginning on page 9, after line 2, strike all of sections 201 and 202 and insert the following:

"NEW SECTION. Sec. 201. A new section is added to chapter 82.04 RCW to read as follows:

(1) Upon every person engaging within this state in the business of playing professional football in the national football league, professional baseball in major league baseball, or professional basketball in the national basketball association, as to such persons, the amount of tax with respect to such business shall be equal to the gross income of the business multiplied by a rate of 1.5 percent.

(2) Upon every person engaging within this state in the business of printing daily newspapers, radio broadcasting, or television broadcasting, in addition to the tax imposed under RCW 82.04.280, there is imposed a surtax equal to twenty percent of the tax due under RCW 82.04.280.

(3) Proceeds of the tax imposed under this section shall be deposited into the stadium and exhibition center account created in section 214 of this act.

Sec. 202. RCW 82.04.290 and 1996 c 1 s 2 are each amended to read as follows:

(1) Upon every person engaging within this state in the business of providing selected business services other than or in addition to those enumerated in RCW 82.04.250 or 82.04.270; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 2.0 percent.

(2) Upon every person engaging within this state in banking, loan, security, investment management, investment advisory, or other financial businesses, other than or in addition to those enumerated in subsection (3) of this section; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of 1.6 percent.

(3) Upon every person engaging within this state in the business of providing international investment management services, as to such persons, the amount of tax with respect to such business shall be equal to the gross income or gross proceeds of sales of the business multiplied by a rate of 0.275 percent.

(4) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, section 201 of this act, and 82.04.280, and subsections (1), (2), and (3) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 1.75 percent.

This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.

Sec. 203. RCW 82.04.360 and 1991 c 324 s 19 and 1991 c 275 s 2 are each reenacted and amended to read as follows:

(1) This chapter shall not apply to any person in respect to his or her employment in the capacity of an employee or servant as distinguished from that of an independent contractor. For the purposes of this section, the definition of employee shall include those persons that are defined in section 3121(d)(3)(B) of the Internal Revenue Code of 1986, as amended through January 1, 1991.

(2) A booth renter, as defined by RCW 18.16.020, is an independent contractor for purposes of this chapter.

(3) Persons engaging in the business of playing professional football in the national football league, professional baseball in major league baseball, or professional basketball in the national basketball association shall not be considered to be employees under this section.

NEW SECTION. Sec. 204. (1) A tax is imposed on each sale of executive suites, luxury box seats, and personal seat licenses in stadiums that exhibit professional football from the national football league, professional baseball from major league baseball, or professional basketball from the national basketball association, in this state. The rate of the tax shall be ten percent of the sales price.

(2) This tax shall be paid by the buyer to the seller and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale, unless the seller is prohibited from collecting the tax from the buyer under the state Constitution or the Constitution or laws of the United States.

(3) The tax shall be stated separately from the selling price in any sales invoice or any instrument of sale. Failure to separately state the tax shall create a conclusive presumption that the tax has not been collected.

(4) Proceeds of the tax imposed under this section shall be deposited into the stadium and exhibition center account created in section 214 of this act.

Sec. 205. RCW 36.100.090 and 1995 1st sp.s. c 14 s 6 are each amended to read as follows:

(1) The governing board of a public facilities district may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a new public facility. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding the location of the public facility, estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.

(2) The department of revenue shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the public facility. The use of the certificate shall be governed by rules established by the department of revenue.

(3) The public facilities district shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the public facility is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.

(4) The department of revenue may authorize an accelerated repayment schedule upon request of the public facilities district.

(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public facilities district.

(6) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.

(7) As used in this section, "public facility" means a baseball stadium with a retractable roof or canopy and natural turf or a stadium and exhibition center as defined in section 101 of this act."

Renumber the remaining sections consecutively and correct any internal references accordingly.

SSB 5999 - S AMD - 261

By Senators Schow and Heavey

NOT ADOPTED 4/2/97

On page 19, line 12, after "201" insert ", 204,"

SSB 5999 - S AMD - 261

By Senators Schow and Heavey

NOT ADOPTED 4/2/97

On page 37, line 21, after "(1) Section" strike "201" and insert "204"

SSB 5999 - S AMD - 261

By Senators Schow and Heavey

NOT ADOPTED 4/2/97

On page 1, line 2 of the title, after "grants;" strike the remainder of the title and insert "amending RCW 36.100.010, 36.100.020, 82.04.290, 36.100.090, 82.29A.130, 67.70.240, 67.70.042, 36.38.010, 36.32.235, 39.04.010, 39.10.120, 39.10.050, 39.10.902, 67.28.180, and 82.14.049; reenacting and amending RCW 82.04.360; adding new sections to chapter 36.100 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.14 RCW; adding new sections to chapter 67.70 RCW; adding a new section to chapter 36.38 RCW; adding a new section to chapter 39.30 RCW; adding a new chapter to Title 82 RCW; adding a new chapter to Title 43 RCW; creating new sections; and providing for submission of this act to a vote of the people."